For drill hole locations, refer to the C Veins Longitudinal Section on Canarc's website www.canarc.net. All previous drill holes are shown as solid circles, proposed 2006 hole locations are shown as open circles and the holes reported in this news release are shown as stars. Note that this year's drill hole numbers refer to location along the section lines, not chronological sequence. Therefore, previous drill holes located along the section lines will cause some gaps to appear in this year's drill hole number sequence.

Each of the drill holes reported herein intersected arsenopyrite (quartz-carbonate) vein mineralization filling fractures and replacing wall-rocks, typical of the C vein system. Based on the 50 drill holes reported to date in 2006, some observations on the geological controls of mineralization can be made at this time that should assist in guiding future drilling programs and the resource estimation process.

The thicker and richer drill intercepts tend to occur in association with more massive, fine grained, volcaniclastic host rocks; where the C vein fault structure flexes along strike and dip; and in the vicinity of the No. 1 fault. The narrower and weaker drill intercepts appear to occur where the C vein structure intersects less permeable and brittle, coarse grained, intrusive host rocks, or where the C vein fault structure pinches down and weakens.

What is not fully understood at this time are the controls on the high grade, visible gold mineralization recently discovered along the western edge of the infill grid and the substantially thicker gold mineralized zones along the north-eastern margin of the infill drill grid. Additional drill is being carried out in these two areas.

James Moors, B.Sc., P.Geo, Vice President, Exploration, is the Qualified Person supervising the 2006 drill program on the New Polaris property. He has instituted a Quality Control sampling program of blanks, duplicates and standards to ensure the integrity of all assay results. All drill core is split by Canarc personnel at the New Polaris camp, and then flown to Vancouver for assay by ALS Chemex. The core samples are dried, crushed, split and a 30-gram sub-sample is taken for analysis. Gold content is determined by fire assay with a gravimetric finish on samples containing greater than 1 gpt Au, and other trace elements are analyzed by atomic absorption. ALS Chemex also uses its own standards for quality control checks.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company's principal asset is its 100% interest in the New Polaris gold deposit, British Columbia.

Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.

The TSX Exchange has neither approved nor disapproved the contents of this news release.